Rolls-Royce shares stall after update

The price of shares in FTSE 100 engine manufacturer Rolls-Royce (LON:RR.) tumbled 2.19% to 95.86p (as of 12:45 GMT) after the firm reported that trading during December was broadly in line with expectations. Management said that year-end liquidity was at the upper end of prior forecasts, but the long-distance aviation industry remains subdued due to the ongoing COVID travel restrictions.

In this environment, the company said forecasting remained highly sensitive to external conditions but they believe to return to positive cash flow during the second half of the year under their current recovery profile.